FinTech Startup PocoPay Mixes Bitcoin Elements With Legacy System

Several companies in the FinTech sector are looking to bring financial services to mobile users, and some of them even take a page out of Bitcoin’s book to achieve that goal. Pocopay is a mobile financial services provider targeting the European market, although the company is not like how your typical bank would be. By using QR codes and debit cards, Pocopay is not that different from the Bitcoin ecosystem on paper. However, the startup still relies on the legacy system, which could be its downfall in the long run.

Pocopay Brings Banking To Mobile Users in Europe

The financial world as we know it today will be undergoing several evolutionary steps in the years to come. Established financial players are struggling to bring any form of innovation to this industry, and the competition is heating up. Bitcoin, FinTech, and other financial startups are all looking to take the crown from banks in the near future.

However, one thing most FinTech and other financial startups have in common is how they are not showing a high level of innovation either. Granted, a lot of these companies are looking into providing financial services without requiring users to own a bank account. Pocopay is one of those startups who aims to provide financial services but is a far cry from a fully licensed bank.

The business model for Pocopay is very straightforward: do not deal with deposits, and offer no loans to customers. In doing so, the startup is vastly different from banks as we know them, albeit the mobile service provider offers some interesting features. For example, customers will get access to a bank account and an NFC-enabled MasterCard debit card, in exchange for a flat fee of EUR 2,99 per month.

This bank account can be used by customers to manage their funds, as well as make transactions. All of the bank account activity can be monitored through the Pocopay mobile application, which is available to iOS and Android users. At the time of publication, there was no official word yet on whether or not other mobile operating systems will receive support in the future.

What makes the service provided by Pocopay of particular interest is how users can make payments by scanning a QR code, an email address, or the recipient’s mobile phone number. Such a payment method draws several similarities with Bitcoin, a popular digital currency providing global financial infrastructure to mobile devices and computer owners.

One thing that holds back services like Pocopay is how they make use of the legacy system, and offer little to no innovation. In the end, this startup offers the same financial services banks offer right now, but as they do not handle customer funds directly, they will not be completely liable for any losses. Plus, this service is only available to select countries – The Netherlands, Estonia, and Spain – for the time being, which means it is not a global solution by any means.

Bitcoin is Global, Cheap, And Requires No Signup

What the world needs is a global financial solution that doesn’t rely on the legacy system and banking infrastructure. None of the FinTech startups in existence seems to be looking at that option, albeit it is tough to come up with such a project. But no one is saying FinTech companies have to reinvent the wheel by any means, as a solution to this problem already exists in the form of Bitcoin.

Providing an open financial network to anyone in the world is what has made Bitcoin so popular over the past few years. Even though some people might see it as a disadvantage to using a form of payment not backed by governments or banks, the existing monetary system is not doing too many people any favors either right now.

Before there was money in its current form, people around the world used to barter and the free market to determine the value of goods and services. Bitcoin offers that simple principle, as there is a fixed supply of coins, with a free market model where users dictate the price per BTC. Plus, no control by central entities removes most of the risk of fraud or corruption in the world of Bitcoin, which is something the traditional financial world will never be without.